Breaking News: Indian Enforcement Directorate Raids Premises Linked to Crypto Fraud
Attention crypto enthusiasts, a recent probe by the Indian Directorate of Enforcement (ED) uncovered a money laundering case associated with a crypto fraud scheme known as Emollient Coin. Here’s what you need to know:
Raid In Ladakh and Surrounding States
In a groundbreaking move, the ED conducted a raid on six premises in Ladakh, Jammu and Kashmir, and Haryana. This marks the first-ever raid in Ladakh related to a cryptocurrency case. The investigation uncovered some shocking details:
- The probe revealed that over 2,500 investors poured in more than $876.43K into the fraudulent crypto business.
- The company in question, Emollient Coin Limited, failed to refund any of the investments. Instead, the accused individual, AR Mir, used the funds to acquire real estate in Jammu before shutting down the company.
The Origins of the Fraud Case
The roots of this case can be traced back to an FIR filed in March 2020 in Leh, following numerous complaints against Mir and another individual named Ajay Kumar Choudhary. Emollient Coin, established in 2017 with its headquarters in London under director Henry Maxwell, operated under fraudulent pretenses:
- A committee appointed by the district magistrate uncovered the deceptive practices of Emollient Coin promoters, sealing the office due to their activities misleading innocent investors with promises of unrealistic returns.
Unveiling the Emollient Coin Scheme
Delving deeper into the Emollient Coin saga, it becomes apparent that the fraudulent operation lured investors by offering irresistible returns and multi-level marketing opportunities:
- Emollient Coin claimed to provide a decentralized storage blockchain utilizing a native coin based on Proof-of-Work and Proof-of-Stake consensus mechanisms for storage space transactions.
- The accused encouraged individuals to invest in the scheme through cash or bank transfers, promising returns of up to 40% with a lock-in period of 10 months.
- Investors were also incentivized with commissions of up to 7% on referrals, creating a network of unsuspecting participants.
Implications For The Crypto Community
This recent scandal adds to the existing challenges faced by the Indian crypto ecosystem, which has seen significant losses due to fraudulent activities. With ongoing efforts to recover funds for affected customers, the impact of such schemes reverberates throughout the industry. Stay informed and vigilant in your crypto dealings.
Hot Take: Protecting Your Investments Amidst Crypto Frauds
As a savvy crypto investor, it’s crucial to remain cautious and conduct thorough due diligence before participating in any investment opportunity. Stay updated on the latest developments in the crypto space to safeguard your assets and avoid falling victim to fraudulent schemes. Your financial security is paramount in the ever-evolving landscape of cryptocurrencies.
Sources:
– Economic Times India
– Tracxn
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